This archive includes posts from our “Catch of the Week” series, in which the Whistleblower Insider blog highlights particular government enforcement actions. Return to:
COVID-19 Frauds of the Week: Fake Employees and Fake Treatments
Posted 07/17/20
Taxpayers, rightfully upset about large companies such as Shake Shack and Ruth’s Chris Steakhouse claiming large sums of Paycheck Protection Program money from the Small Business Administration, should consider shifting some of their ire to applicants posing as the original intended recipients—small businesses—who are getting in on the grift. And for fraudsters who prefer to market unproven products rather than...
This week’s COVID-19 frauds centered on (temporarily) successful attempts to receive Paycheck Protection Program (PPP) funds for nonexistent companies and fabricated or inflated employee headcounts.
First up is the owner of a wedding planning company that sought personal enrichment via more than $3 million in forgivable PPP loans for his 120 nonexistent employees. Fahad Shah, 44, of Murphy, Texas, was arrested...
COVID Frauds of the Week: Consumer and Investor Fraud
Posted 06/18/20
Scammers continue to prey on the vulnerable during the COVID-19 crisis, and thankfully, they continue to get busted for it. This week, the enforcement highlights centered on consumer and investor fraud, although there are surely numerous other kinds of fraud that have not yet been stopped.
The Federal Trade Commission this week announced that it had taken legal action to try to shut down a remarkably (and...
DOJ Charges Healthcare CEO with Criminal Securities and Healthcare Fraud
Posted 06/12/20
In 2008, Rahm Emanuel, then-President Obama’s chief of staff, famously said, “You never want a serious crisis to go to waste. I mean, it’s an opportunity to do things that you think you could not do before.” However poorly phrased, generations of political and business leaders have understood the kernel of truth in his admonition.
So have scammers and rip-off artists.
We have been following the...
A COVID-19 Pesticide, Unproven Treatments, and Splashing Out On SBA’s Dime
Posted 06/5/20
The US DOJ continued its efforts to combat the sale of unproven and unregistered COVID-19 treatments and preventatives and charged purported “business owners” for CARES and PPP funds fraud this week.A Georgia woman pleaded guilty to selling an unregistered pesticide, in violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). Rong “Vicky” Sun, 34, of Fayetteville, Georgia, will be...
As the COVID-19 pandemic continues to batter businesses and everyday Americans, it has been one of the busiest weeks yet for the government agencies stopping fraudsters who target government relief programs. In new cases filed this week, the government has gone after alleged bogus sales and price gouging of PPE, new frauds on the Paycheck Protection Program (PPP), healthcare fraud, and more.
As we enter our third month of nation-wide shelter-in-place efforts, fraudsters continue to exploit government relief programs. For the second week in a row, the Eastern District of Texas DOJ is going after a purported small business owner for defrauding the Paycheck Protection Program (PPP). Samuel Yates has been charged with wire fraud, bank fraud, and making false statements for allegedly submitting fraudulent loan...
COVID Frauds of the Week: Unproven Tests, Nonexistent Equipment, Price Gouging, and $10 Million in SBA Loans
Posted 05/15/20
Fraudsters continue to attempt to capitalize on anxiety and uncertainty during the pandemic by marketing unproven products and services for the prevention, treatment, or cure of COVID-19.
This week, we highlight the massive FTC efforts to identify and shut down illegal activities via Warning Letters (around 100 issued to date); two new SEC actions; as well other government actions to quash sales of unproven or...
COVID Frauds of the Week: First Charges for Fraud on the PPP
Posted 05/8/20
As the COVID-19 crisis continues, so too do the reports of brazen fraud against the vulnerable and the government programs designed to help them. Like last week, here in our new feature we will focus on some noteworthy trends in government enforcement in this unfortunate new area of fraud.
Fraud on Government Spending
Notably, we have seen the first of what will undoubtedly be many government enforcement actions...
COVID Frauds of the Week: Misrepresented Mask Inventories and Medicare Fraud
Posted 05/1/20
Amid COVID-19-induced fear and hardship, fraud is on the rise. Already, the FTC has received over 18,000 reports of COVID-19 related fraud. In response, the SEC, CFTC, and other regulators announced they are on the lookout for pandemic-related fraud, and the DOJ warned would-be wrongdoers that it will not tolerate profiting off of public panic.
This week, we focus on three enforcement actions brought by the...